H.R. 10668: Presidential Emergency Action to Stabilize Energy Act

This bill would give the President temporary authority to suspend certain federal taxes on gasoline and other taxable fuels during a qualifying national emergency.

What triggers the tax suspension

The President could issue a declaration if there is a national emergency that is causing, or threatens to cause, a major disruption in the supply or availability of taxable fuel in the United States, or a major increase in fuel prices. Once that declaration is made, a “national emergency gas tax suspension period” would begin.

What taxes would be affected

During that suspension period, the federal excise tax on taxable fuel would be set to zero. The bill would also suspend the portion of the tax that normally goes to the Leaking Underground Storage Tank Trust Fund.

How long the suspension could last

The suspension would last 60 days by default. The President could extend it to 120 days, but only if, at least 15 days before the 60-day period ends, the President sends Congress written notice saying the extension is warranted because the emergency is continuing.

The bill says only one suspension period could be counted for any single national emergency.

What happens to the money that would otherwise go to trust funds

Even though the fuel tax would be suspended for consumers and fuel transactions during the emergency period, the Treasury Secretary would be required to transfer money from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund to make up for the lost revenue. In other words, the bill would replace the forgone fuel-tax revenue with general Treasury funds during the suspension.

When it would stop applying

The suspension authority would not apply to fuel removed, entered, or sold after December 31, 2028.

When it would take effect

The changes would apply to fuel removed, entered, or sold after the bill becomes law.

Relevant Companies

None found.